logo-loader
viewEthernity Networks Ltd

Ethernity Networks predicts brighter future as data usage goes through the roof

“This trend has continued into the first quarter of 2019, with revenues materially surpassing the same period of 2018," the tech firm said

internet
Helping the traffic flow over the net

Ethernity Networks PLC (LON:ENET) shares rose on Wednesday after the Internet hardware specialist said it expects to start generating cash from 2020 as momentum builds for its new generation of modules.

Ethernity’s technology helps servers run much faster through the efficient 'offloading' and rerouting of internet traffic.

READ: Ethernity Networks delivers on Korea contract

Last year, it signed the first deals for its new SmartNIC-based product in Korea and North America.

Revenues were higher in the second half of 2018 over the same period in 2017 due to an increase in activities around these licensing deals, Ethernity said today.

“This trend has continued into the first quarter of 2019, with revenues materially surpassing the same period of 2018. In 2020 the company anticipates commencing the generation of cash flow from trading operations during the second half of the year.”

David Levi, Ethernity's chief executive, said there were also discussions underway that will allow for 'multiple times' growth in 2020 as operators work through testing phases and reach mass deployment.

The group's revenues in 2018 eased slightly to US$1.1mln (US$1.5mln), while losses came in at US$2.55mln (US$159,000 profit). Net cash at the year-end was US$8.5mln.

"The second half of the year saw a major change in securing lucrative technology licensing deals with Tier1's that will generate ongoing recurrent revenue in the years to come, said the statement.

In afternoon trading, shares in Ethernity were 7.8% higher at 27.50p.

 -- Adds share price --

Quick facts: Ethernity Networks Ltd

Price: 41.5 GBX

AIM:ENET
Market: AIM
Market Cap: £13.51 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Ethernity Networks Ltd named herein, including the promotion by the Company of Ethernity Networks Ltd in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Investor Update: Westminster Group chosen as partner for Ghana port contract

Top stories from the Proactive Investors UK newsroom. Chariot Oil & Gas (LON:CHAR) says a  development study for its Anchois Field, offshore Morocco, has shown it to be technically feasible. Development options include a "subsea-to-shore" concept connecting to existing onshore...

on 18/6/19

2 min read